Still Around - Posted by Lew Cash


#1

Posted by Soapymac on December 23, 1998 at 20:08:00:

I must plead ignorance here, so I will leave myself open to being educated by others, but to me, this scenario begs the question…

If investors in the area would not touch the home six months ago for $18K on a flip, why would they want to take an L/O flip for more money?

Educate me, please. This is not making sense to me.

Cordially,

Soapymac


#2

Still Around - Posted by Lew Cash

Posted by Lew Cash on December 23, 1998 at 14:19:53:

About 6 mo’s ago I made a $$$ offer (which was accepted)on a nice brick single family brick home which original asking price was $24k and the owner willing to part with for $18k. My whole attention was to locate another investor within 30 days and do a simultaneous closing and collect a few thousand dollars. The problem was that in that area no investor was willing to pay more than $10-$12k for the home so not having the cash myself I ended having to pull out of the deal and I forfeited my $500 earnest deposit.After all this time I find out that this property is still on the market. I have found out from the realtor that the owner is now willing to do a land-contract on the property. I have submitted an offer for $18k L/C with a 30/day lead before the first payment is due contingent on me finding a qualified tenant. If the deal is accepted I will then secure a tennat(i have a database full plus other sources of buyers) with a 3500/down create positive cash flow and then possible sell entire contract to a investor (for a reasonable fee of course) and insure that this is a win-win situation either way it goes. Does this seem like a good startegy (at least better than the first time i tried to acquire this property)? I appreciate the feedback. THIS IS A VERY EDUCATIONAL SITE.

Happy Holidays


#3

Not to sound foolish, but… - Posted by Cesar

Posted by Cesar on December 23, 1998 at 22:08:36:

I believe you should read your post, and then answer your own question. You state that investors would buy the property at $10-12,000, and then you immediately wonder if by doing a Land Contract for $18,000, if you could make any money?

First I have a question which doesn’t make much of a difference, but what are the comps in that area? Are they $15K or $30K?

Frankly, I believe no matter how you slice this deal, it comes up peanuts…at least that’s what you’ll end up making on it. I would place my $500 elsewhere.

Good luck, and Happy Holidays.